The United Kingdom is providing more than £13 million in taxpayer funding to support Mozambique’s natural gas sector, despite recently imposing a ban on new oil and gas drilling in the North Sea. This financial aid is aimed at helping Mozambique improve the management and collection of its gas revenues.

The funding is part of the Tax and Economic Governance Programme, established in 2018 and set to continue until at least the end of 2026. Its purpose is to assist the Mozambican government in maximizing the benefits from the country’s burgeoning gas industry, which is expected to generate approximately £4.6 billion annually from gas sales and related taxes.

Despite the UK government’s commitment to supporting Mozambique’s economic governance, the decision has attracted criticism due to perceived inconsistencies in energy and environmental policy. While the UK has halted new drilling to curb domestic fossil fuel production, funds are being used to facilitate gas extraction elsewhere, prompting questions about the government’s stance on climate change and energy strategy.

Critics argue that this financial support contradicts the UK’s own restrictions and could divert resources from domestic needs. Some have highlighted that the £13.2 million allocated could alternatively contribute to easing energy costs for struggling British households, potentially funding energy bills for nearly 9,000 families or restoring winter fuel payments for tens of thousands of pensioners.

Reform, a think tank, labeled the arrangement as illogical, calling for a re-evaluation of the UK’s foreign aid budget and a reconsideration of the North Sea drilling ban. Reform’s Robert Jenrick, a former government minister, stated that foreign aid spending should be reduced and advocated for the resumption of domestic oil and gas exploration.

The Foreign, Commonwealth & Development Office defended the programme, emphasizing its broader security and financial governance objectives. A spokesperson noted that the initiative helps prevent money laundering and enhances Mozambique’s capacity to identify and block funding potentially linked to terrorist groups, thereby contributing to the protection of UK national security interests.

The ongoing debate highlights the tensions in balancing international development aid, environmental commitments, and domestic energy policies amid the global transition to cleaner energy sources.